Home Sale Contingencies in Real Estate Contracts

Web Admin - Thursday, April 10, 2014

illinois real estate contingencies lawyerBuying a new home is a complicated task that requires a lot of pieces to fall into place in just the right way. For many people, one of these pieces is the ability to sell their current home. Often, people need to sell their old home first to make sure they have enough cash on hand to afford the new one. Of course, sometimes that is not feasible, and people will want to put an offer down on a new house before they have managed to sell their old one. When this happens, people can use a “home sale contingency” clause in their contract to purchase the new home. In short, a home sale contingency clause voids the contract for the sale of the new house in the event that the buyer is unable to sell their old one.

Types of Home Sale Contingencies

There are two broad types of home sale contingencies that lawyers can build into a contract: a “sale and closing contingency” and a “closing contingency.” The sale and closing contingency is used in the event that the buyer has yet to find a prospective buyer for their own home. Conversely, buyers use closing contingencies when they have a prospective buyer who has made an offer for their home, but the sale has not yet closed. In this instance, the contingency acts as an insurance policy against the sale of the buyer’s home falling through at the last minute. While these two types of clauses function in largely the same way, both of them voiding the sale of the new house if the old one does not sell, the sale and closing contingencies are more likely to include a “kick out” clause.

Kick out clauses are a right of first refusal. They allow the seller to keep searching for other buyers for the house. In the event that one of these other buyers makes an offer, then the seller must notify the first buyer. The first buyer then has some period of time to sell their house or else the seller is allowed to make the sale to the new buyer instead.

Factors to Consider When Using a Home Sale Contingency

Buyers should consider two things when deciding whether to ask for a home sale contingency: the effect it will have on the new home’s price and the other costs of purchasing a house. For the first point, home sale contingency clauses will likely drive the price of the new home up. The buyer is asking the seller to take the risk that the buyer’s old home will not sell, and the seller will likely want compensation for bearing that risk.

For the second point, buyers can still end up sinking other costs into the attempted purchase of the new home. They can end up paying for things like home inspections, appraisal fees, and the like, even before they have sold their old house. In the event that the buyer fails to sell their home, then they have wasted any money spent on such things.

If you are in the market for a new house, find an Illinois real estate attorney to help ensure that you receive strong, fair contracts. We serve towns all across northwest Chicago including Palatine, South Barrington, and Mount Prospect.

About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.

Recent Posts


Illinois traffic attorneys POA Buffalo Grove law firm Illinois insurance disputes Rolling Meadows employment law attorneys Palatine civil attorney Illinois rollover accident lawyers traffic accidents Crystal Lake employment law attorney living trust vs will Home Remodeling Repair Act insurance denial appeals life insurance lawyer no contest clauses appealing an insurance claim IRELA insurance denials fiduciary rule delay Employment Discrimination Law cell phone accidents Illinois Sales Representative Act living trust employee discrimination Illinois DUI attorney Crystal Lake civil litigation lawyer jet ski accidents field sobriety test murder defense insurance disputes insurance agents tax attorney boating under the influence Schaumburg personal injury attorney Inverness corporate attorney Inverness elder law lawyer clemency Buffalo Grove criminal defense lawyer life insurance policy sole proprietorship Joliet general practice lawyers estate planning lawyer landlord underage DUI Rolling Meadows business lawyer Arlington Heights car crash attorneys Illinois estate planning Rolling Meadows Attorney problem employees expungement Crystal Lake criminal defense attorney car accident lawyers Arlington Heights injury attorney Barrington personal injury lawyer Illinois personal injury lawyers Illinois estate planning law firm dram shop law Rolling Meadows criminal attorney marijuana crimes attorney unpaid overtime Rolling Meadows traffic attorney privacy medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers GM ignition switches Illinois employment lawyer probate claims Chicago insurance claim attorneys IRA benefits cell phone tower data Crystal Lake medical malpractice attorneys liens medication errors Illinois home inspection reckless homicide employees LLCs trust payments in terrorem provision bad faith insurance claims Illinois medical malpractice attorney Crystal Lake pedestrian accident lawyer brain injury estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers personal injury attorney Buffalo Grove personal injury lawyer Schaumburg medical malpractice lawyer Des Plaines estate plan Schaumburg elder law lawyer Crystal Lake law firm Illinois personal injury boating accidents Barrington employment law attorney Schaumburg construction accident lawyer Deer Park medical malpractice attorney traumatic brain injury Illinois car accident attorney defective products lawyer elder abuse Riverwoods estate planning lawyer Illinois registered agent overtime violations Illinois workplace discrimination attorney employment law, Illinois employment laws home inspection lawyer Illinois Smoke Detector Act Barrington Illinois estate planning lawyer Chicago trucking accident attorney surgical mistakes medical research spinal cord injuries murder denied insurance claim creditors civil rights violation digital evidence probate lawyer Mount Prospect real estate lawyer preventable medical errors Illinois insurance claim dispute lawyer ObamaCare Rolling Meadows medical malpractice lawyers Rolling Meadows drug defense attorney Buffalo Grove probate lawyer Palatine elder law attorney attorney fees Palatine criminal defense lawyer gift taxes Barrington employment attorney Palatine traffic accidents Des Plaines medical malpractice attorney traffic tickets Schaumburg car accident attorney consent to a search trustee Des Plaines personal injury lawyers Palatine traffic lawyer capital gains tax Crystal Lake business law attorneys mortgage Inverness probate lawyer Crystal Lake personal injury attorney agent Inverness accident lawyer job lawyers involuntary manslaughter slip and fall Des Plaines drug lawyer Rolling Meadows tax attorney Barrington boating accident attorney rent to own real estate contracts privacy laws Schaumburg Attorney insurance adjusters trucking accidents blood alcohol content Palatine corporate law attorneys Palatine workers compensation lawyer bicycle accidents criminal sexual harassment premises liability Illinois mortgages Arlington Heights real estate lawyer Schaumburg probate attorney employee rights Arlington Heights accident attorney Rolling Meadows criminal lawyer Illinois personal injury attorney insurance claim delay Whistleblower Claims Crystal Lake accident attorney wage theft Illinois insurance claims lawyers Rolling Meadows corporate lawyer rest breaks llinois Real Estate Lawyers Association Illinois jet ski accident lawyer Rolling Meadows insurance lawyer Thanksgiving subcontractor workers compensation benefits deed transfer defective products Arlington Heights Attorney Palatine estate planning lawyer slip and fall accidents Liquor Control Act medical malpractice Barrington criminal lawyer living wills Palatine law firm insurance claim dispute Arlington Heights employment attorney special needs trust Illinois insurance attorney Buffalo Grove corporate attorney Arlington Heights wills and trusts attorneys Schaumburg estate planning lawyer BAIID denial of life insurance installment contracts insurance agent negligence civil litigation Buffalo Grove injury lawyer life insurance claims hit and run accident rumble strips Jay Andrew Kenilworth estate planning attorneys foreclosed rental property Des Plaines Traffic Lawyer breach of contract pregnant women Illinois employment attorneys Des Plaines claims law firm comp time boating DUI Rolling Meadows estate planning attorney estate planning attorney preventing accidents Des Plaines injury law firm vacation home fines rollover accidents DMV Palatine injury attorney Mt Prospect Attorney breathalyzer test Inverness civil lawyer workers comp murder charges insurance claims Barrington real estate lawyer Rolling Meadows insurance dispute lawyers, insurance dispute Illinois tax attorney Palatine personal injury lawyer Long Grove estate planning Arlington Heights TBI attorney Rolling Meadows Traffic Lawyer pizza emoji estate planning owner responsibility Crystal Lake will lawyer coronavirus Des Plaines accident attorney Illinois defective products attorney insurance claim denial denied insurance claims golf accidents driving Crystal Lake tax lawyer independent contractor underfunded trust contracts Arlington Heights personal injury attorney loopholes Deer Park employment law attorney insurance dispute attorney sexual images condo association Crystal Lake estate planning lawyer South Barrington real estate lawyer car accidents liability claims real estate zoning rollover car crashes pet bites Schaumburg personal injury lawyers DNR changes to mortgage law Des Plaines drug crimes lawyer Schaumburg criminal attorney modern family estate planning Schaumburg personal injury lawyer Kenilworth estate planning lawyer Rolling Meadows employment attorney personal injury Palatine civil litigation lawyer Des Plaines insurance attorney Schaumburg insurance lawyers Des Plaines real estate lawyer traffic violations defense Do Not Resuscitate estate attorney Arlington Heights personal injury lawyer texting and driving Rolling Meadows Crystal Lake medical malpractice law firm Illinois workers compensation car crashes suspended license fatal car accidents personal injury lawyer small business Chicago car accident lawyer traffic crimes Arlington Heights Traffic Lawyer Illinois wills and trusts attorneys Rolling Meadows traffic law firm trusts Schaumburg employment law attorneys Illinois trucking safety criminal law advance healthcare directive FMLA elder law car crash insurance attorney traffic offenses manufacturing bicycle dooring accidents Barrington civil litigation attorney Illinois Human Rights Act license reinstatement Illinois trusts attorney medical malpractice compensation Arlington Heights pedestrian accidents Super Mario Crystal Lake insurance lawyer homestead rights caregiver Illinois business lawyer liability Exclusions South Barrington real estate attorney Long Grove real estate lawyer drug crime Illinois estate planning attorney digital media accounts, estate planning, Arlington Heights estate planning attorney, digital assets drug crimes Chicago corporate attorney BUI spinal cord injury criminal record Illinois driving without license cell phone DUI attorney first degree murder Palatine drug lawyer Illinois traffic accident lawyer loss of consortium construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation caretaker rights Rolling Meadows car accident lawyers Illinois pet lawyer pedestrian-automobile accident Federal Food Drug and Cosmetic Act Kenilworth estate planning attorney unfunded trust Crystal Lake car accident attorney controlled substance traffic laws unauthorized overtime Illinois wills and trusts Palatine probate lawyer power of attorney for healthcare texting while driving Illinois medical malpractice lawyers Inverness real estate lawyer Illinois living will head on collisions real estate contract estate planning trusts Illinois bicycle safety corporate law car crash injuries Legal Info pedestrian accidents Illinois elder law attorney federal crimes real estate blended families college kids drugs child safety Illinois insurance claim dispute lawyers distracted driving accident victims license suspension revenge porn insurance claim denials personal injury claim Des Plaines motorcycle accident attorney Schaumburg traffic lawyer Arlington Heights estate planning attorney Barrington business law firm insurance claim Deer Park traffic lawyer Fair Labor Standards Act Crystal Lake car accident lawyer internet probate FSLA Rolling Meadows DUI lawyer compensatory time Arlington Heights tax lawyer natural gas explosion meal breaks Palatine construction attorney personal injury accidents employment contract Rolling Meadows personal injury lawyers Illinois Transfer on Death Instrument construction contracts forming a corporation in Illinois Des Plaines real estate attorney Crystal Lake employment lawyer Rolling Meadows boating crash lawyer auto accidents pay when paid contract Palatine employment attorney Illinois workers compensation attorney Arlington Heights wills and trusts lawyers Schaumburg drug defense lawyer Rolling Meadows litigation lawyer employee misclassification Family Medical Leave Act drunk driving statistics Arlington Heights lawyer Illinois boating accident lawyer Illinois workplace lawyer probate fees Rolling Meadows accident lawyer financial advisors products liability life insurance DGAA Illinois wrongful termination lawyer fiduciary rule Palatine employment lawyer power of attorney Chicago insurance law firm Deer Park workers compensation lawyer jet ski Buffalo Grove employment lawyer anesthesia errors Food and Drug Administration's Food Safety Modernization Act Inverness real estate attorney Barrington employment law firm Long Grove real estate attorney Class A misdemeanor Arlington Heights medical malpractice lawyer Chicago biking tips ken apicella Illinois red light cameras Buffalo Grove real estate attorney Illinois speeding lawyer Barrington litigation attorney Schaumburg employment attorney real estate attorneys commercial real estate Chicago lawyer Inverness DUI lawyer condo TBI pedestrian accident Illinois Probate Act of 1975 Illinois criminal defense attorney ACA Deer Park accident attorney Barrington workers compensation attorney residential real estate Crystal Lake injury attorney minimum wage civil litigation attorney institutional trustee swimming pools Forcible Entry taxes Illinois insurance claim attorney gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys car collision motorcycle accident Barrington medical malpractice lawyers Rolling Meadows insurance attorney business litigation employment attorney real estate leasing healthcare claims Chicago will attorney, social media platforms, Illinois estate planning lawyer, pedestrian injuries, pedestrian fatality dog bites Palatine business attorney Illinois employment law firm Illinois law PTSD trucking accident lawyers Crystal lake insurance dispute attorney digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers dealing with problem employees truck collisions Schaumburg DUI defense Chicago attorney Barrington estate planning attorney Illinois medical malpractice case Retaliatory Discharge Illinois construction accident attorney Palatine employment law lawyer Deer Park criminal attorney Des Plaines collections attorney product liability Illinois business law atorneys crossover accidents probate process Des Plaines criminal attorney startup company commercial leases Rolling Meadows employment law attorney accidental death benefits Illinois workers compensation lawyer BAC Deer Park motorcycle accident lawyer Illinois insurance lawyer personal injury claims Illinois insurance dispute lawyers motorcycle accident lawyer Chicago estate planning Illinois LLC creation Schaumburg wrongful death attorney Schaumburg real estate lawyer construction accidents Palatine real estate lawyer Chicago employment attorney Deer Park real estate law firm Illinois employment law attorney Illinois traffic laws underinsured motorist dynasty trusts Chicago estate planning lawyer Illinois motorcycle accident lawyer drug crimes lawyer hiring employees landlord tenant law real estate lawyer severance agreements Fourth of July nursing home negligence estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, mass shooting low-ball insurance settlement Arlington Heights traffic attorney traumatic brain injuries Buffalo Grove car accident lawyer Arlington Heights wills and trusts lawyer Palatine Attorney holiday statistics Des Plaines tax law firm Illinois employment law attorneys social media after death Colin Gilbert marijuana workplace sexual harassment Illinois will lawyer DUI Buffalo Grove traffic lawyers probate claims process Schaumburg estate planning attorney Illinois collections attorney medical marijuana traffic violations Illinois personal injury lawyer Illinois lawyer Rolling Meadows insurance dispute lawyers Palatine insurance lawyer Des Plaines personal injury lawyer uninsured motorist Crystal Lake traffic attorney Deer Park DUI lawyer insurance negligence irrevocable trust Home Sale Contingencies Barrington criminal defense lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys DUI penalities Arlington Heights trucking lawyer Des Plaines pet law attorney Mount Prospect wills and trusts lawyers Illinois medical malpractice claim Deer Park traffic accident attorney Schaumburg estate attorney insurance dispute Chicago employment lawyer Deer Park personal injury lawyer Barrington drug crime attorney car accident lawyer Long Grove wills and trusts attorneys Illinois job attorney Rolling Meadows marijuana attorney unpaid assessment wrongful termination Barrington estate planning lawyer Palatine trusts lawyer insurance claim dispute attorney medical malpractice claims Buffalo Grove personal injury attorney Long Grove estate planning attorney Illinois Trust Code Crystal Lake bike accident lawyer living trust benefits Crystal Lake personal injury lawyer Buffalo Grove traffic attorney personal injury law firm digital information paid sick leave employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys Buffalo Grove medical malpractice lawyers Schaumburg injury lawyer senior citizens Schaumburg civil litigation attorney Barrington Traffic Lawyer Illinois civil litigation lawyer trench injuries real estate attorney Self-Directed IRA Accounts Buffalo Grove insurance claim dispute lawyers wills Landlord Tenant Ordinance estate planning for college students real estate closing Detainer Actions whistleblower protections comparative negligence right to work Crystal Lake traffic lawyer Transfer on Death Instrument deadly crashes food poisoning employment law Palatine punch death Illinois pedestrian accident attorney healthcare wills and trusts Arlington Heights employment law attorneys Crystal Lake pet attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys eluding a police officer Policy Cancellation Illinois small business Attorney Ken Apicella speeding Illinois employment laws vacation home trauma after an accident work unions new real estate form Inverness personal injury attorney natural gas health insurance dispute Illinois real estate disability benefits Arlington Heights car accident lawyer Illinois probate lawyer Arlington Heights criminal lawyer Rolling Meadows probate lawyer IRS fault based insurance bike accident Arlington Heights insurance attorney drug possession federal regulations for LLCs Crystal Lake medical malpractice lawyer Schaumburg criminal law attorney license revocation employment lawyer Chicago will attorney Illinois real estate lawyer Barrington attorney icy parking lots automated cars Des Plaines civil attorney Affordable Care Act Inverness estate planning lawyer back injuries Rolling Meadows personal injury attorney hands free device Colin H. Gilbert income distribution deducation Illinois traffic ticket lawyer Inverness insurance attorney Des Plaines DUI attorney Des Plaines personal injury attorney Illinois traffic attorney Illinois injury lawyer Schaumburg corporate attorney Illinois Workers’ Compensation Commission investment property estate tax Illinois Wage Payment and Collection Act foreclosure Illinois employment law distracted driving accidents drunk driving pain and suffering Rolling Meadows personal injury lawyer Illinois corporate lawyer Palatine corporate attorney wrongful death guardianship attorney employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Inverness injury lawyer Crystal Lake employment attorney School Visitation Rights Act Rolling Meadows real estate attorney car accident Chicago traffic lawyer Illinois employee rights attorney. Arlington Heights wills and trusts attorney traffic deaths Long Grove estate planning attorneys operating agreements license Illinois attorney criminal defense commercial leasing Inverness traffic law firm insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys filing a medical malpractice claim IRA trust transfer Barrington injury attorney overtime pay Mount Prospect elder law attorney pet law CAM Barrington personal injury attorney wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace